Amanda Fischer, former chief of staff at the U.S. Securities and Exchange Commission who once worked under SEC Chair Gary Gensler, accused the liquid staking industry of replicating the rehypothecation model multiple reuse of client collateral without transparent oversight. Fischer argued that a similar structure contributed to Lehman Brothers’ collapse in 2008.
Fischer wrote on X that the SEC’s stance on LST effectively encourages the creation of synthetic tokens via intermediaries. She contends that assets can be staked repeatedly without real control.
Don’t Conflate Control With Decentralization
Cryptorisk consultant Austin Campbell, founder of Zero Knowledge Consulting, argues the issue lies more with the regulator's mindset than with the technology. He suggests they operate with a 1970s view of centralized finance. In modern automated protocols “If a protocol is centralized, someone can control actions and handle funds. If there’s no management, there’s no control. The key question is who actually governs the system.”
“SEC Interpretation Is Too Narrow”
Regulatory attorney Kurt Watkins, who advises crypto projects, believes Fischer raises valid concerns but overstated her case. He stated that in most liquid staking setups, the tokens issued are simply proofs of ownership, not synthetic derivatives or leveraged positions. Watkins says Fischer misinterpreted SEC commentary and wrongly equated basic LST models to complex financial instruments.
Matthew Sigel, head of digital assets at VanEck, pointed out a logical inconsistency: Fischer claims the SEC is promoting crypto, then says there’s no oversight.
“Which is it?” he asked.
Joe Doll, chief legal counsel at Magic Eden, called Fischer’s post “misleading.” He suggested she either lacks understanding of the technology or is purposefully mischaracterizing it.
Mert Mumtaz, head of Solana infrastructure firm Helius Labs, said comparing transparent and decentralized systems to Lehman‑style shadow banking is inaccurate. He argued such claims may stem from either ignorance or intentional manipulation.
Who Is Amanda Fischer
Fischer now works at Better Markets, an advocacy group that previously opposed launching spot Bitcoin ETFs in the U.S.
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